10 Questions Monopoly ECON 2106 Principles of Microeconomics 1. What is the profit maximizing quantity? 2. What is the profit maximizing price? 3. What is the firm's maximum profit? 4. What is the consumer surplus if the firm maximizes profit? 5. What is the producer surplus if the firm maximizes profit? 6. What is the welfare loss associated with the monopoly? 7. What is the allocatively efficient quantity? 8. What is the allocatively efficient price? 9. What is the consumer surplus at the allocatively efficient price and quantity? 10. What is the producer surplus at the allocatively efficient price and quantity? 11. What is the long-run price if this is a typical firm and this market becomes perfectly competitive? D P 80 60 52 40 36 24 MC AC 38 34 16 20 22 30 32 Q MR